PER – simple but limited

A simple article on "Buy & Hold" elicited so many readers' comments. There is a hunger for genuine debate on investing techniques, obviously. In this lackluster market, I have been staying away from focusing on stocks, why not go further to refine ideas on investing.Too many investors would hold onto low PER as the main decision making trigger. It is an important indicator but we must have a strong appreciation of its powers. Only by realising its limitations, can we use PER effectively.The price-earnings ratio (PER) is probably the most common financial indicator used by investors. However, there are a lot of shortcomings...

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Buy & Hold?

Hi Dali,Sorry to trouble you. One of my readers ask me about these questions. I don't spend much time on stock analysis, but you do. Here is what he wrote to me:Hi K C,Thank you very much for your interesting and informative write-ups. I really enjoy reading them.Is buy and hold (say 5 to 10 years) workable in Malaysian stocks?Is it possible to sieve out 10 stocks among the thousands listed in Bursa Malaysia that can1. still survive and prosper in the next 10 years2. gain 15% a year compounded3. need the least supervision (say half-yearly review)?You are the best person to give him your insights. If possible, you can reply this email or...

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Standard & Poor's Views On Sovereign Debt

FinanceAsia: Standard & Poor's answers some of the most frequently asked questions about what potential impact the credit situation in Europe may have on Asia's economies and sovereign ratings. | 28 May 2010 Worries over the credit standing of a number of eurozone sovereigns have driven their funding costs up significantly over the past few weeks. The deteriorating conditions prompted the eurozone members and the IMF to approve a €110 billion ($135 billion) rescue package for Greece on May 3.The downgrades by Standard &...

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So What Has Changed?

The volatility is numb minding, or rather mind numbing. To summarise, its about debt. When we had the subprime mess, the governments everywhere could still print money and stimulate their economies. When it is sovereign debt, those countries cannot just print. The outstanding debt looks too large and no is willing to buy new bonds unless its issued at very high yields. Trouble is the countries affected are mainly inside the Eurozone. The Greeks, the Portuguese and even the Spaniards cannot issue new debt in their own currency, they only have the Euro. You cannot be issuing in Euro as you have no way of controlling your monetary policies that...

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No Need For Words!

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Quality of Living worldwide city rankings 2010 – Mercer survey

The 2010 Mercer Quality of Living Survey is based on 39 criteria, including political, socio-economic, environmental, health, education, and transport. In Mercer's eco-city ranking list, Calgary in Canada has taken out the top spot followed by Honolulu in the United States. The only Australian city to make the top ten in the eco-city rankings is Adelaide in seventh position. Criteria for the eco-city ranking include air pollution, traffic congestion, water availability, waste removal and sewage treatment.Vienna retains the top spot as the city with the world’s best quality of living, according to the Mercer 2010 Quality of Living Survey. Zurich...

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Possibly The Best Concert Show By The Most Under-Rated Musician

Last night I met Leslie Loh at Champs as he had to pass me the JZ8 cds I ordered. Then he started to rave to me about a concert DVD by Lowell Lo Koon Ting, and how I must get to watch it. I paused, and then I said "Fuck you Leslie, do you ever remember reading my blog... I have fucking posted it as possibly the best concert show..." So, anyway we had a good laugh. Yes, Lowell is one talented, passionate and under-rated artiste that the world always seem to lack in. I have played the 4 DVDs almost once a month every month since October and it still tears me up. Get it if you are in HK, maybe Rock Records still have it.-------------------------------25...

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Marketocracy Portfolio Updated - May 26, 2010

Further updates to Salvador Dali Mutual Fund (SMF) at Marketocracy. Beating the S&P500 by 33 percentage points since inception.http://malaysiafinance.blogspot.com/search?q=marketocracy SMF m100 S&P 500 DJIA Nasdaq recent returns vs. major indexes Beating Today MTD QTD YTD SMF 0.81% -10.50% -8.33% -3.24% S&P 500 0.04% -9.37% -7.94% -2.98% DOW -0.23% -8.56% -7.28% -3.47% Nasdaq -0.12% -10.06% -7.69% -2.45% recent returns ...

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